Bipartisan Group of 21 Senators Introduces
Renewable Fuel Standard  

Today, March 17, 2005, Senators Lugar (R-IN) and Harkin (D-IA) introduced S. 650 The Fuels Security Act of 2005.  This legislation sets a national renewable fuel standard of 4 billon gallons by 2006 and 8 billion gallons by 2012; more than doubling the production of domestically produced renewable fuels including ethanol, biodiesel, and cellulosic biomass fuels.

This legislation could spur production of biofuels in all regions of the country, using a variety of feedstocks and stimulating significant investment and economic development.  S. 650 has been introduced at a time of record high oil prices and a 2004 trade deficit of more than $166 billion for oil imports.

The bill authorizes the US Environmental Protection Agency to oversee implementation of this regulation on U.S. fuel refiners, blenders, and importers and includes an escalation clause allowing the EPA Administrator, in conjunction with the Secretaries of Energy and Agriculture, to increase the renewable fuel requirement in 2013.  The bill also includes a special credit for cellulosic ethanol, where one gallon of cellulosic ethanol will be equivalent to 2.5 gallons of renewable fuel.

Co-sponsors of the bill include Senators Hagel (R-NE), Grassley (R-IA), Johnson (D-SD), Bond (R-MO), Dorgan (D-ND), Talent (R-MO), Nelson (D-NE), Coleman (R-MN), Durbin (D-IL), Thune (R-SD), Obama (D-IL), Salazar (D-CO), Dayton (D-MN), Frist (R-TN), Conrad (D-ND), Bayh (D-IN), Stabenow (D-MI), DeWine (R-OH), and Bunning (R-KY).

In Senator Lugar’s words, “This legislation would play a vital role in increasing America ’s security because renewable fuels are a key component to energy independence for our country.  Ethanol and biodiesel are premier, high performance fuels that have tremendous environmental benefits. This increase in production would significantly improve rural economies … in all 50 states and around the world. In addition, it will spur investment in valuable infrastructure which is critical to the viability of a national renewable fuels system.”

The bill would also eliminate the Clean Air Act’s two percent oxygenate requirement, allow the EPA to study impacts of seasonal variations on blending requirements, and mandate federal fleets to purchase ten percent ethanol fuel and two percent blended biodiesel (in five years) and 20 percent biodiesel (in ten years) where priced competitively.

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The Environmental and Energy Study Institute (EESI) is a non-profit organization that works at the nexus of policy and innovation to promote environmentally sustainable societies.  EESI was founded in 1984 by a bipartisan group of Congressional Members dedicated to finding environmental and energy solutions.  EESI provides credible, timely information and innovative policy ideas through coalition building, media outreach, publications, briefings, workshops and task forces on the issues of energy efficiency and renewable energy, transportation, smart growth, agriculture and global climate change.  Carol Werner leads the EESI team as Executive Director.